China's Hunan Nonferrous to Buy Metals as Reserves

HUNAN, Apr. 15 -- China's top zinc producer, Hunan Nonferrous Metals Corp Ltd, plans to spend 1.2 billion yuan ($176 million) to build up metal reserves at its smelters as prices slump, the official regional paper Hunan Daily reported.

    Hunan Nonferrous plans to ask banks for a loan to buy lead, zinc, tungsten, antimony and indium from its smelters, and will sell down the stockpiles when their prices recover.

    The Hunan Province's treasury will offer interest subsidies to help the company implement the purchases, the newspaper quoted Mei Kebao, vice secretary of Hunan's party committee, as saying.

    Hunan Nonferrous Metals Corp controls China's largest zinc producer, Zhuzhou Smelter Group Ltd.

    (Source: Reuters)